As the year draws to a close, it’s time to consider the changes involved in buying property and getting a mortgage. Mortgage changes in 2023
1. The NHG limit will be increased by €50,000
Protect homeowners if they can no longer pay their mortgage. Have outstanding debts to pay off by selling their property. Currently, you can apply for an NHG mortgage if your property is worth up to €355,000 (at his one-off cost of 0.6% of the mortgage amount). To make it more accessible, from January 1st the limit will be increased to €405,000. If you want to add energy saving measures to your purchase, the limit is 6% higher to €429,300. He could also buy the property as early as December and ask the mortgage provider to wait until his application is approved directly in 2023 so he can take advantage of this offer.
2. The tax-free gift limit has been lowered
A homebuyer up to 40 can now receive her one-time gift of up to €106 tax-free. increase
671. From 2023, this limit will be reduced to €28,947. The government has decided to change this to give homebuyers with wealthy or not-so-wealthy parents a more equal opportunity. at least 10%.
3. Real Estate Transfer Tax Limits Starters and Investors
Real estate transfer tax exemption is offered to starters in the housing market. This currently applies to properties with a maximum value of €400,000. There are several criteria that must be met. You are under the age of 35, plan to live in the property yourself, and have not yet received this exemption. From 2023, the limit will be raised to €440,000.
For individual and commercial investors who purchase real estate, the property transfer tax he will be raised from 8% to 10.4% from January. The government hopes that further increases will make first-time buyers more competitive when buying properties. If you buy a pied-a-terre or a villa in Holland, you will also have to pay a higher real estate transfer tax.
4. Mortgage interest deduction
Next year, the mortgage interest deduction will be further reduced to the minimum tax rate of 36.93%. This means that if you have a high income and pay 49.5% income tax (income over €73,071), you will only get a tax deduction of 36.93%. This is a measure that has been phased in over the past few years and aims to prevent high-income homeowners from benefiting more from lower mortgage rates.
5. Student Loan Impact During Mortgage Application
If you have outstanding student loans, you may be able to reduce your mortgage loan amount. However, student loans are less effective than, say, a personal loan from a bank or a car lease. The weighting factor for these loans is 2%. Starting next year, the student loan weighting factor will be 0.65% for the old student loan system. 0.35% for the new student loan system. For example, if you have €20,000 in student loans you will have a negative credit impact of about €14,000. Mortgage changes in 2023